Travelzest has said it may fail to meet expectations for the full year following a sharp fall in profits.

Profit at the London-based tour operator for the half year ended April 30th fell to just £400,000 according to figures released today, down from £1.4 million last year.

The company specialises in providing a broad base of travel products and travel programmes for consumers in North America, particularly Canada, and the United Kingdom.

Travelzest warned the results for the full year will depend on “what remains a challenging and unpredictable economic climate”.

In a statement, Travelzest added: “Given the difficulties inherent in forecasting in this industry and in these challenging economic times, there is a material risk the company will not achieve the board’s current expectations.

“We remain optimistic about the medium and longer-term prospects for the group despite the difficulties in the UK in the current year.”

Revenue at the group increased five per cent to £19.8 million over the six month period.

Travelzest confirmed it remains in discussions about a potential takeover bid, first disclosed in April.

But the company said there can be “no certainty the talks will result in an offer being made”.

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